We have come across a situation where a participant/shareholder has named his company as beneficiary of his MP/PS benefits. There is no QJ&S issue and my question is does anyone feel this prohibited by Erisa.

Any thoughts would be appreciated.

I assume that the company is a corporation. I know of no prohibition against naming someone who is not an individual as beneficiary. Of course, the corporation would not be a "designated beneficiary" under the MRD rules.

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Noel C. Ice
www.trustsandestates.net
teleice@Dtrustsandestates.net

I assume that the company is a corporation. I know of no prohibition against naming someone who is not an individual as beneficiary. Of course, the corporation would not be a "designated beneficiary" under the MRD rules.

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Noel C. Ice
www.trustsandestates.net
teleice@Dtrustsandestates.net

I agree with Mr. Ice; unless the plan document restricts beneficiaries to individuals, I know of no reason why the corporation could not be the beneficiary.

I'd like to ask that client who named his Corporation as beneficiary of his qualified plan one question:

WHY?

If one knew what the client is trying to accomplish, one might be able to suggest alternatives. Just off the top of my head, this route strikes me as being VERY short on both flexibility and leverage. Of course, I might be missing something obvious. (I often do).

Query: Can a Corporation take an Income Tax deduction for the estate tax paid on that IRD?

John L. Olsen, CLU, ChFC
Olsen Financial Group
St. Louis, MO